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Foreclosure filings have backed off this year compared to 2009, but it may not be a brightening economy causing the decline. A new Florida Supreme Court rule requires lenders to verify they are the actual owners of a home before making the initial case for foreclosure. Show me the “note,” in other words.
The problem is the notes — legal promises from borrowers to repay a debt — have been sold and resold, bundled into securities, scanned into computers, sealed in unknown vaults and lost in various other ways as homes got caught up in the puzzling markets of the real estate boom.
“The original note is something very significant, and they just seem to have lost thousands of them,” said Boca Raton attorney Marlyn Wiener, who handles real estate cases. “Nobody knows where the stuff is.”
Read more: http://www.miamiherald.com/2010/05/24/1645122/new-rule-says-banks-must-prove.html
